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Restate the following income statement for a retailer in contribution format. Sales revenue ($100 per unit) $ 98,000 Less cost of goods sold ($58 per
Restate the following income statement for a retailer in contribution format.
| Sales revenue ($100 per unit) | $ | 98,000 | ||||
| Less cost of goods sold ($58 per unit) |
| 56,840 | ||||
| Gross margin | 41,160 | |||||
| Less operating costs: | ||||||
| Commissions expense ($5 per unit) | $ | 4,900 | ||||
| Salaries expense | 7,900 | |||||
| Advertising expense | 5,800 | |||||
| Shipping expense ($3 per unit) |
| 2,940 |
| 21,540 | ||
| Operating income | $ | 19,620 |
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